HDC Community Fund Loans

Parkway West
 

About our loan recipient: Salem Housing Authority serves approximately 9,000 Salem area residents within Salem's urban growth boundary, providing safe and affordable rental housing, rent assistance and services to families, seniors, and people needing accessible features or special accommodations.

About this project: Parkway West is part of Parkway Village Apartments, a 124-unit, mixed-income development in Salem. The entire development required renovation to correct moisture-penetration problems. To attract needed financing, Housing Development Center helped owner Salem Housing Authority (SHA) devise an innovative solution, which involved partitioning the site into two separate legal entities, Parkway West and Parkway East. The partition enabled SHA to fund the renovation of Parkway West with 9% low income housing tax credits, while using HUD’s new Rental Assistance Demonstration (RAD) program to convert Parkway East’s Public Housing subsidies to project-based Section 8 subsidies. This subsidy conversion qualified Parkway East's units for additional debt and equity funding.

Why we're invested: SHA obtained needed funding for the Parkway West renovation, including a $7.6 million allocation of 9% Low Income Housing Tax Credits. But to maintain eligibility for these funds and keep the project moving forward, SHA had to complete significant predevelopment work. A loan from the HDC Community Fund helped support these estimated $560,000 in predevelopment costs.

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